How Employee Training Affects Your Company Reputation - And Your Bottom Line

BY: DEB JOSEPH

The ongoing skilled trades employee shortage is causing many manufacturers to hire from outside of the industry, bringing in people without manufacturing skills or backgrounds. However, due to the unique nature of the manufacturing industry, this lack of experience and knowledge brings many challenges for the incoming workforce. 

Imagine (or remember) your first day on the job at a plant. You are expected to keep up with the line and make a quality product that passes inspection, all while remembering to stay “Lean.” Workers quickly learn that manufacturing has its own culture, language and work processes, providing for much complexity and confusion among new hires. 

To ease workers’ transitions into a manufacturing environment, a strong training program is essential. This is especially critical now as millennials make up a large part of the available workforce, and 87% of millennials view professional development and career growth as very important. To show that your company is interested in investing in its employees, training is the answer. 

In addition, providing ongoing training to workers contributes to both employee engagement and productivity as their skills are enhanced and efficiencies are improved. This can greatly impact your bottom line, as companies that invest in employee training achieve a 24% higher profit margin than those who don’t. 

With so much at stake, most companies cannot afford to neglect training for workers. Consider, for example, the following benefits that come from training:

• Training reduces stress and builds confidence. Whether someone is completely new to a manufacturing environment, or simply trying to learn a new process within the facility, the effectiveness of their training will determine how well they perform. In fact, 74% of workers stated that lack of training was the biggest hurdle in achieving their full potential at work. By gaining additional guidance and understanding through training, workers will be set up for success as they can more confidently approach their jobs.
• Improved confidence leads to better job satisfaction and production quality. When workers are confident in their abilities, they become more engaged. This heightened engagement not only improves worker happiness, but also can have massive impacts on quality and productivity.
• Job satisfaction leads to improved employee retention. To ensure talent stays within your company, training can help. As you continue to invest in the skills of workers, their job satisfaction increases, thus eliminating their desire to look elsewhere for work. With 40% of workers leaving their jobs within the first year due to poor training, this aspect cannot be ignored. 
• Employee retention leads to more favorable company reviews. How do employees feel toward your company? Training plays a large role in determining this answer. By demonstrating that you care about your workers and investing in their professional development, workers will be much more likely to view your company in a favorable way. This will be reflected in employee surveys and workplace culture. 
• Favorable reviews attract more workers to your company. When workers are happy with their company, they will likely spread the word to others – in person or on review sites such as Glassdoor and Indeed. Drawing from my past experience as a third party recruiter, I can attest that candidates do visit these sites when considering different job opportunities, making these online reviews highly critical. By establishing a strong reputation as a company that invests in workers and wants them to grow and succeed, hiring efforts will be supported as candidates will view your company in a more favorable and desirable way.

A properly trained employee feels better about the job they are doing and produces quality work. When they produce quality work, they are more engaged in their job and motivated to improve the business as a whole. And just as one bad apple can spoil the basket, the opposite also is true: happiness and engagement are contagious.

For those new to a manufacturing environment or those looking to broaden their base of knowledge, The Center offers a Manufacturing Skills Development (MSD) course that provides participants with an understanding of each of the main aspects of manufacturing: Lean, Quality, Problem Solving and Culture. For more information, or to register for an upcoming class, click here.


MEET OUR EXPERT

Deb Joseph, Business Solutions Manager
Deb Joseph is a Business Solutions Manager at The Center, primarily assisting manufacturers in the southern and central regions of the state. In her role, Deb draws from her experience in business development and sales, along with her knowledge of the manufacturing industry, to provide relevant and effective solutions to manufacturers' needs.


Since 1991, the Michigan Manufacturing Technology Center has assisted Michigan’s small and medium-sized businesses to successfully compete and grow. Through personalized services designed to meet the needs of clients, we develop more effective business leaders, drive product and process innovation, promote company-wide operational excellence and foster creative strategies for business growth and greater profitability. Find us at www.the-center.org.